Virgin Galactic Revenue vs. Return On Asset

SPCE Stock  USD 6.66  0.03  0.45%   
Based on the measurements of profitability obtained from Virgin Galactic's financial statements, Virgin Galactic Holdings may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Virgin Galactic's ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
2019-03-31
Previous Quarter
4.2 M
Current Value
402 K
Quarterly Volatility
1.3 M
 
Covid
At present, Virgin Galactic's Days Of Sales Outstanding is projected to increase significantly based on the last few years of reporting. At present, Virgin Galactic's Income Tax Expense is projected to decrease significantly based on the last few years of reporting. The current year's Net Interest Income is expected to grow to about 23 M, whereas Net Loss is projected to grow to (427.6 M).
For Virgin Galactic profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Virgin Galactic to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Virgin Galactic Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Virgin Galactic's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Virgin Galactic Holdings over time as well as its relative position and ranking within its peers.
  
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Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Virgin Galactic. If investors know Virgin will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Virgin Galactic listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(16.26)
Revenue Per Share
0.421
Quarterly Revenue Growth
(0.77)
Return On Assets
(0.22)
Return On Equity
(0.78)
The market value of Virgin Galactic Holdings is measured differently than its book value, which is the value of Virgin that is recorded on the company's balance sheet. Investors also form their own opinion of Virgin Galactic's value that differs from its market value or its book value, called intrinsic value, which is Virgin Galactic's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Virgin Galactic's market value can be influenced by many factors that don't directly affect Virgin Galactic's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Virgin Galactic's value and its price as these two are different measures arrived at by different means. Investors typically determine if Virgin Galactic is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Virgin Galactic's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Virgin Galactic Holdings Return On Asset vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Virgin Galactic's current stock value. Our valuation model uses many indicators to compare Virgin Galactic value to that of its competitors to determine the firm's financial worth.
Virgin Galactic Holdings is rated below average in revenue category among its peers. It also is rated below average in return on asset category among its peers . At present, Virgin Galactic's Total Revenue is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Virgin Galactic by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Virgin Revenue vs. Competition

Virgin Galactic Holdings is rated below average in revenue category among its peers. Market size based on revenue of Industrials industry is at this time estimated at about 315.99 Billion. Virgin Galactic adds roughly 6.8 Million in revenue claiming only tiny portion of equities under Industrials industry.

Virgin Return On Asset vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Virgin Galactic

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
6.8 M
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Virgin Galactic

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.22
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Virgin Return On Asset Comparison

Virgin Galactic is currently under evaluation in return on asset category among its peers.

Virgin Galactic Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Virgin Galactic, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Virgin Galactic will eventually generate negative long term returns. The profitability progress is the general direction of Virgin Galactic's change in net profit over the period of time. It can combine multiple indicators of Virgin Galactic, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income371 K389.6 K
Operating Income-531.5 M-504.9 M
Net Loss-450.1 M-427.6 M
Income Tax Expense453 K475.6 K
Net Interest Income21.9 M23 M
Interest Income34.8 M36.5 M
Net Loss-549.2 M-521.7 M
Income Before Tax-501.9 M-476.8 M
Total Other Income Expense Net29.6 M31.1 M
Net Loss-502.3 M-477.2 M
Non Operating Income Net Other-30 M-28.5 M
Change To Netincome65 M34.2 M
Net Loss(29.79)(31.28)
Income Quality 0.89  0.94 
Net Income Per E B T 1.00  0.80 

Virgin Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Virgin Galactic. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Virgin Galactic position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Virgin Galactic's important profitability drivers and their relationship over time.

Use Virgin Galactic in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Virgin Galactic position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Virgin Galactic will appreciate offsetting losses from the drop in the long position's value.

Virgin Galactic Pair Trading

Virgin Galactic Holdings Pair Trading Analysis

The ability to find closely correlated positions to Virgin Galactic could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Virgin Galactic when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Virgin Galactic - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Virgin Galactic Holdings to buy it.
The correlation of Virgin Galactic is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Virgin Galactic moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Virgin Galactic Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Virgin Galactic can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Virgin Galactic position

In addition to having Virgin Galactic in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Soft Drinks
Soft Drinks Theme
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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Soft Drinks Theme or any other thematic opportunities.
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When determining whether Virgin Galactic Holdings is a strong investment it is important to analyze Virgin Galactic's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Virgin Galactic's future performance. For an informed investment choice regarding Virgin Stock, refer to the following important reports:
Check out World Market Map.
You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
To fully project Virgin Galactic's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Virgin Galactic Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Virgin Galactic's income statement, its balance sheet, and the statement of cash flows.
Potential Virgin Galactic investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Virgin Galactic investors may work on each financial statement separately, they are all related. The changes in Virgin Galactic's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Virgin Galactic's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.